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09 July, 2020
Although the current scenario has lead to strong headwinds, investors are increasingly moving towards residential real estate as a tangible option, delivering high returns. Over time, the definition of home has undergone a significant change. Under the current market conditions, in comparison to other asset classes being fraught with significant risk, purchasing a home would be a secure move. Given that stocks are too volatile to risk an investment, you might consider investing in a property in one of the metro cities.
Read on to know what makes residential real estate a great investment avenue under the contemporary market conditions.
Financial security in a tangible asset
Buying a home involves a significant financial investment. Besides, it serves as an immediate asset, tangible in nature. For most of the buyers, it is probably the largest financial investment. Since it is tangible, the investors get the essence of physical security as well. Prices of property keep appreciating most of the time. With a residential property, you can get financial security as well as peace of mind.
Incremental property value
Across the world, property and gold are among the best-known assets. Generally, the value of these assets keeps increasing. In residential property, different factors determine the value of the asset. These include infrastructural development, time, location, land and interest rate. Buying a property in a prime location in your city can prove economically worthy. In course of time, the value of the property would increase. You can sell off the property at a higher price after a few years.
Safer investment option
Stocks and mutual funds are volatile. Investors looking for safer options for investment often opt for real estate. Even in fixed deposits, the interest rates are decreasing. The best option is to invest in a stable asset like residential units. Market fluctuation does not affect the price of residential property as strongly compared to other investment classes. The investor has a greater scope of diversification. Besides, the risks are lower as compared to stocks.
Steady flow of income
Investing in real estate can give you a steady flow of income. The contemporary socio-economic environment is unprecedented. While operating businesses, professionals would look out for more fiscal discipline. In case you own a property, you can simply rent it out. This can give you a steady flow of cash. Even at times when other streams of income seem uncertain, landlords can stay free from worries.
In most of the metropolitans, property prices are increasing over the years. This would be the right time for you to go for a real estate investment. You can check out the best places to buy your home around your city, consulting real estate agents or brokers. Invest in a safe and secure asset for personal use or rent it out.
Taking all these factors into consideration, it is fair to say that the time is opportune for making a move towards that home you had been eyeing. With developers also trying to stimulate the market with competitively priced properties, attractive payment plans & other lucrative incentives, getting a good deal will be a clincher currently.